OptimizeRx Corporation (NASDAQ:OPRX) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET
Company Participants
William Febbo - CEO
Ed Stelmakh - CFO
Steve Silvestro - President
Marion Odense-Ford - General Counsel
Andrew D'Silva - SVP, Corporate Finance
Conference Call Participants
Ryan Daniels - William Blair
Kyle Bauser - B. Riley Securities
Max Michaelis - Lake Street Capital
Anna Kruszenski - Barclays
Operator
Good afternoon, everyone, and thank you for joining OptimizeRx's Second Quarter Fiscal 2024 Earnings Call.
With us today is the Chief Executive Officer of OptimizeRx, William Febbo. He is joined by Chief Financial Officer, Ed Stelmakh; President, Steve Silvestro; General Counsel, Marion Odense-Ford; and Senior Vice President of Corporate Finance, Andrew D'Silva.
At the conclusion of today's earnings call, I will provide some important cautions regarding the forward-looking statements made by management during today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via webcast only. Instructions are included in today's press release and in the Investors section of the company's website.
Now, I would like to turn the call over to OptimizeRx CEO, William Febbo. Sir, please go ahead.
William Febbo
Thank you, operator, and good afternoon to everyone joining today's second quarter 2024 earnings call.
While we welcome 36% year-over-year revenue growth, positive cash flow from operations, and a beat for adjusted EBITDA, we fell short on the revenue expectations and consensus mid-point. This was primarily a result of a timing issue with one of our largest DAAP deals to-date.
We are having success in converting our DAAP pipeline into closed deals. However, because DAAP is new innovative solution in the market, there are additional approvals at the pharma customer level required to closeout all the items that would allow us take the revenue into the quarter. We were working hard with our client to get everything documented, but we didn't get it there before the end of the quarter.
That said, we are building momentum with our clients and partners that have embraced our DAAP solutions and proprietary network, and this is getting us closer to being pharma's preferred partner for brand marketing.
As you're aware, pharma as an industry runs all new commercial tactics through internal multi-functional approvals, particularly for multimillion dollar deals, and we needed these additional approvals to close. In this particular instance, one of our longest standing clients committed to moving forward with approximately $6 million multi-brand DAAP program with that was due to launch in Q2 2024 and got slightly delayed in their internal approval process. This customer is now nearly complete with its approval process and we expect full contract approvals to be completed in Q3 with conversion to revenue in the second half of 2024. I believe we would have surpassed consensus expectations on the top as well as the bottom had this timing shift not taken place. But the great news is that we're moving forward and the size of the transaction illustrates the power of the DAAP platform.